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Friday, March 26, 2010

Goldcorp (TSE:G) Acquires Warrants and Shares from Terrane Metals (TSE:TRX)

Goldcorp Buys Warrants and Shares from Terrane Metals

Goldcorp (TSE:G) has acquired $97.6 million in shares and warrants from Terrane Metals (TSE:TRX), helping them fund the Mt. Milligan mine in British Columbia. A group of underwriters also were part of the acquisition of shares and warrants.

National Bank Financial Inc. led the group of underwriters who will acquire 63.6 million units, consisting of one common share and a half common share purchase warrant, for C$1.10 each. Goldcorp has agreed to purchase 27.3 million of the same units made up of common shares and warrants.

Construction on the mine, which has production estimates of 89 million pounds of copper and 262,100 ounces of gold annually for the first six years of mining, is scheduled to begin in July. The mine has a life-span of 22 years.

Terrane Metals is willing to sell a portion of Mt. Milligan to raise more needed capital, with the buyer getting the rights to the metal produced at the part of the project sold.

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